OIL TRANSIT CORRIDORS & ENERGY DIPLOMACY

(more than 40% of global oil passes through four conduits- Hormuz, Malacca, Rab-el & Suez Canal)
This week, I have decided to revisit the topic of Energy Diplomacy in view of the ongoing war in the middle east and the Venezuela factor. This war has paralyzed refinery and export terminal operations. According to maritime traffic data for the Persian gulf, marine traffic has been reduced to almost zero. Yet, while some ships were bombed last week, a ship carrying fuel for India managed to pass through this gulf safely within the same week. This is energy diplomacy.
Oil transit corridors are still a global security concern as more than 40% of all oil transits through four conduits of the straits of Hormuz, Malacca (“jugular vein”), Rab-el-Mandeb and the Suez Canal. International Energy Agency (IEA) expects that these quantities will rise from 40% to 60% by 2030. It is believed in security circles that any longer interruption could cause large-scale economic meltdown and plunge the global economy into a recession.
This topic is often under played and diluted within the broad Economic Diplomacy. Yet, it has emerged as a major stand-alone diplomatic effort within broad international relations that is reshaping and re-pivoting the international relationship landscape in an energy transition era. To this country many countries have developed energy diplomacy action plans.
If energy diplomacy is mishandled, it can lead to perilous and embarrassing circumstances. This is because oil and gas including its transnational transportation system and transit corridors are intrinsically rooted in very high-level political and commercial undertones. To this end, understanding the primary, secondary and tertiary ecosystems and the forces which shape the energy sector is crucial to sustainable energy security. For instance, 80% of China’s oil imports pass through the Malacca strait.
The advent of the 20th century was the early era of Energy Diplomacy, which was mainly shaped by transnational oil companies and industry gladiators. Such diplomacy was dominated by the transnational oil companies which produced and distributed fossil fuel, rather than sovereign governments.
With advancement of civilization, energy issues exponentially increased in importance. Oil commodities ignited significant public interest and soon became a politically charged national security issue. Therefore, Governments increased support to their transnational oil companies and sooner than later, oil politics were birthed at national, regional and global landscape to shape the control of “black gold” as oil is often called.
The oil shocks in the aftermath of world war II were the ones which tremendously contributed to the growth of security concerns and diplomatic efforts in the energy space. The most important developments were the Suez Crisis of 1956-1957 and the OPEC oil embargo of 1973–1974. Entire economies were ruined and brought to their knees thereby escalating energy issues as top security issues. Other disturbances which galvanized Energy Diplomacy implications and plunged the global economy in a recession include:
1)The Iranian revolution of 1979
2)The Iran-Iraq War of 1980
The first Persian Gulf War in 1990–1991
3)The 2003 Iraq invasion
4)Russian Ukrainian gas dispute in 2009
This era is back once again as can be seen with what is happening around Venezuela and the middle east. The Israel and USA war with Iran. These cycles have been going on for hundreds of years from the Persian Babylonian, Mesopotamia timelines. If you are a student of history and understands linear regression, you can anticipate a repeat of these wars in the future.
With advancement of civilization over the last 150 years, country specific realization of the gigantic need to become energy secure has led to promulgation and relentless refinement of local and international relations policies. Energy has turned out to be a global weapon. Not only that but also critical transit corridors.
Energy Diplomacy is not just concerned with availability and sufficient access to the commodity itself but covers the transportation systems and corridors such as international oil and gas pipelines all over the world. Some of these pipelines are a matter life and death not just for exporting countries but also for the importing countries to the point that any attempt to shift alliances could lead to unprecedented geopolitical consequences. To this end, some markets are so captured that they cannot come out of entrapment because all possible alternative routes have also been captured.
Energy Diplomacy extends to corridors which are extensively used for transportation of energy. These corridors are servitude because they pass through other countries, international waters and water bodies controlled by other countries. If the country with arbitrage cuts the relations off and you have no alternative, you are as good as dead-national security is imperiled. This is why some projects are developed jointly with other countries to promote joint ownership and thus entrench prospects of harmonious co-existence.

Energy Diplomacy is an integral part of international relations. To guarantee energy security, Energy Diplomacy must be at the fore of international relations. It is impossible to get the best energy deals in the absence of adequate and well-crafted Energy Diplomacy. From the Mesopotamian oil controversies more than hundred years ago, oil politics have become extremely complex such that it is unfathomable to exist without a strong strategy rooted in Energy Diplomacy.

Investing in Energy Diplomacy is crucial to the survival of a national economy. National security is directly linked to energy security. To this end, deliberate and well calibrated polices targeted at accentuating energy security can only be birthed and give dividends after adequately investing in Energy Diplomatic discourse.

Dr. Johnstone Chikwanda is an Energy Consultant, Researcher, Author, and a Fellow of the Engineering Institute of Zambia (EIZ), Email: j_chikwanda@yahoo.com

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